Post offices go corporate style to boost investment
Updated: Oct 04, 2013 02:58:09pm
New Delhi, October 4 (KNN) Our good old post offices which have been serving the bottom of the society through postal services and mobilizing small household savings is now going the corporate way.
Sitting on the corpus of funds, the department of post office wants to maximize returns on its investment.
It is in this context, the department is looking for Chief Investment Officers to boost their investment. The Ministry of Communications and IT wants to appoint officers for the investment departments of the Post Office Life Insurance Fund.
The chief investment officer is a corporate executive that is charged with the responsibility of handling all investment decisions for the corporation.
This type of practice is done by big mutual fund companies and big corporate companies. The post offices will run as the bank branches. This will make banking accessible to the small entrepreneurs for small savings and small businesses.
The Department of Posts had submitted their application earlier this year before the Reserve Bank for a licence to offer full-fledged banking services.
The India postal network has 1, 54,822 post offices in the country. Of these, 1, 39,086 are in rural areas and 15,736 are in urban regions.
There are around 90,000 bank branches in the country and provision of real-time banking services through postal network is estimated to triple the current banking network.
According to the plan, Post Bank will have 50 branches in the first year, which will be increased to 150 by the fifth year.
To meet RBI norms, the postal department has proposed to set up a new entity - Post Bank of India - that will have an independent board and separate operations.
The board will have independent directors, representatives from the finance ministry and the postal department. (KNN/SD)
Sitting on the corpus of funds, the department of post office wants to maximize returns on its investment.
It is in this context, the department is looking for Chief Investment Officers to boost their investment. The Ministry of Communications and IT wants to appoint officers for the investment departments of the Post Office Life Insurance Fund.
The chief investment officer is a corporate executive that is charged with the responsibility of handling all investment decisions for the corporation.
This type of practice is done by big mutual fund companies and big corporate companies. The post offices will run as the bank branches. This will make banking accessible to the small entrepreneurs for small savings and small businesses.
The Department of Posts had submitted their application earlier this year before the Reserve Bank for a licence to offer full-fledged banking services.
The India postal network has 1, 54,822 post offices in the country. Of these, 1, 39,086 are in rural areas and 15,736 are in urban regions.
There are around 90,000 bank branches in the country and provision of real-time banking services through postal network is estimated to triple the current banking network.
According to the plan, Post Bank will have 50 branches in the first year, which will be increased to 150 by the fifth year.
To meet RBI norms, the postal department has proposed to set up a new entity - Post Bank of India - that will have an independent board and separate operations.
The board will have independent directors, representatives from the finance ministry and the postal department. (KNN/SD)
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